In the search for diversification – why yellow metal is back in vogue

The world has changed – sustained low global growth, negative interest rates, potential US rate hikes and geopolitical risks are just some of the reasons why volatility has risen in financial markets.
Gold, the world’s oldest asset class, out of vogue for quite some time, has been a beneficiary of this uncertain environment. The price of gold has rallied strongly in recent months and, once again, the yellow metal is performing as a hedge against generalised financial uncertainty.

The world has changed – sustained low global growth, negative interest rates, potential US rate hikes and geopolitical risks are just some of the reasons why volatility has risen in financial markets.
Gold, the world’s oldest asset class, out of vogue for quite some time, has been a beneficiary of this uncertain environment. The price of gold has rallied strongly in recent months and, once again, the yellow metal is performing as a hedge against generalised financial uncertainty.

In turbulent times, convertible bonds can benefit from rising equity volatility as proven by their strong performance history at times of
rising interest rates. Over the next six months, we also believe the multiple sources of returns provided by high yield convertible bonds should continue to prove very attractive. Our High Yield Convertible Bond strategy can provide a solution for investors hunting for yield yet wanting substantially better credit quality than high yield indices.
During this webinar, Maxime Perrin, Senior Analyst and Product Specialist of Lombard Odier IM’s convertible bonds team, will deliver the portfolios’ quarterly review and discuss how high yield convertible bonds can provide diversification away from the usual high yield risk.

Insurance Linked Securities are an attractive asset class for investors in today’s market environment. In a portfolio of traditional assets these securities are regarded as good diversifiers. Lombard Odier IM has an experienced ILS team who has been investing in this area for more than 10 years. This expertise will be available mid-February 2016 through a UCITS vehicle investing in Catastrophe Bonds (CAT Bonds), one of the main types of ILS.

We believe it’s time to reconsider your exposure to emerging markets. On this webinar we will discuss:

The impact of divergence in emerging markets
o Why recognising the increasing structural differentiation between each EM country and their different rates of real economic growth, inflation and budget balance dynamics is ever more important when investing in EM.

Opportunities for growth and yield?
o Emerging market fixed income offers an appealing yield-to maturity as interest rates in advanced economies are likely to remain low for longer in a world of global disinflation/deflation.

Impact of emerging market currencies have falling to multi year lows?
o Are there are opportunities appearing to benefit from this and should you be accessing EM in local or hard currency?

Implementation Matters
o Harnessing fundamentals to build fixed income portfolios in order to generate more efficient exposure to market beta in a world of lower liquidity, increased herding and central bank domination

Rapid commodity price declines are having as much of an impact on high grade credits as their high yield counterparts. With central banks anchoring interest rates close to zero, the yield advantage from investing in these credits remains significant. So too does the risk of rating agency downgrades.

At this webinar, we will focus on the crossover space between credit and high yield and ask – do the risks in crossover present a buying opportunity?

Away from the noise generated by China/EM related headlines, we believe the eurozone remains home to many well-run companies with excellent prospects. In particular, we see opportunity in the dynamic small and mid caps that we think have the potential to become future leaders. At this webinar we will discuss:
1. Eurozone review – summary of our top level macroeconomic views by Salman Ahmed, Global Strategist at Lombard Odier IM
2. Uncovering gems – assessing opportunity in eurozone small and mid caps by Xavier Lagrandie and Michel Leblanc, Portfolio Managers of LO Funds-Eurozone Small & Mid Caps